What must occur to unused loan funds before departure?

In maritime finance, unused loan funds typically need to be returned to the lender before the departure of the vessel. This requirement prescribes that any funds not utilized for their intended purpose are released back to the lender as a way to ensure that the loan agreement is honored and to maintain financial integrity. Returning the unused portion of the loan prevents any potential misuse of the funds and keeps the lending process transparent.

This practice is particularly important in the context of maritime commerce, where adherence to financial agreements is crucial for managing risks and ensuring compliance with regulatory standards. By returning unused funds, the borrower confirms the effective management of finances and maintains a good relationship with the lender, which is paramount particularly in ongoing maritime operations.